Yes. very,,,,,,,,,,,,,,,,
Answer:
The pp's new value of operations would be $487,805. The right answer is e
Explanation:
According to the given data we have the following:
ke=12%
kd=8%
wd=30%
we=70%
To calculate the pp's new value of operations we would have to calculate the WACC as follows:
WACC=we*ke+wd*kd*(1-t)
WACC=70%*12%+30%*8%*(1-0.4)
WACC=9.84%
Therefore, pp's new value of operations=EBIT(1-t)/WACC
=$80,000(1-0.4)/9.84%
=$487,805
The pp's new value of operations would be $487,805
Answer:
1. The Fed uses open market operations to increase the money supply, thus lowering interest rates and stimulating investment.
Expansionary monetary policy is done to stimulate economy by increasing money supply. It lowers interest rates and leaves more money for consumption and investment.
2. Increased aggregate demand leads to some higher prices and more total output.
Increased AG will lead to prices being higher in response. This would spur producers to produce more thereby increasing output.
3. Sticky input prices adjust to inflation.
Input prices will rise overtime to match the increase in prices.
4. Producers lay off some workers in response to higher input prices, causing a decrease in aggregate supply.
When the inputs rise, production becomes more expensive so producers will have to lay off workers to maintain profitability. They will also supply less goods as a result.
5. In the long run, equilibrium returns to the same initial production level.
In the long run therefore, the reduction in AS leads to production returning to pre-monetary policy figures.
Answer:
The standard hours allowed for October would be 5,400 hours
Explanation:
For computing the standard hours allowed for the October month, first, we have to compute the standard per hour unit which is shown below:
= Standard direct labor ÷ Number of units to be produced
= 6,000 ÷ 1,500
= $4
Now, in October month, the direct labor worked for the 1,350 hours and the standard price per unit is $4, So standard hours allowed is
= October direct labor hours × standard price per unit
= 1,350 hours × $4
= $5,400 hours
Answer: Option (c) is correct.
Explanation:
When interest rates fall then firms want to borrow more for new plants and equipment and households want to borrow more for home building.
If there is a fall in the interest rate in an economy this will make the loans cheaper.
So, every individual wants to grab this opportunity by taking cheaper loans for various purposes such as home building, buying new plants and equipment, etc.
Hence, firms take an advantage of the lower interest rate by making investment in plants, equipment and machinery.
Whereas households also want to borrow from banks at lower interest rates for building their home. Because it will become cheaper for them to take loan at the ongoing lower interest rate.
